Bill Darcy Shares Optimism for 2026 Rebound in State of the Association Address – NKBA

Don’t Miss Voices from the Industry at KBIS 2026 — Learn More >

Back

Bill Darcy Shares Optimism for 2026 Rebound in State of the Association Address

The Global President and CEO of NKBA | KBIS shared insights about 2025 accomplishments and plans for the year ahead, before introducing futurist Jaye Anna Mize of Future Snoops for the State of the Industry presentation.

By NKBA Staff

Despite challenges in the economy overall and the kitchen, bath and remodeling industries specifically, the sector is resilient and flexible — and the NKBA remains a strong and positive voice for advocacy and member support.

That was the overarching message from Bill Darcy, Global President and CEO of NKBA | KBIS, as he delivered the State of the Association address at the annual meeting of the membership at KBIS. He also recapped NKBA’s accomplishments in 2025 and offered observations for the year ahead.

Among the biggest challenges the industry faced in 2025 were tariffs — particularly changing tariff policies — the rising costs of building materials, the persistent labor crisis, and the housing shortage, all of which contribute to consumer caution.

“There’s no way to sugarcoat it,” Darcy said. “The last year was challenging for our industry. It was a period of less-than-optimal growth. That’s better than decline, for sure, but it’s not the success we know is possible.”

Pointing to the complex tariff situation as having “upended global economic dynamics,” he said, “We’ve heard from our members that tariffs, along with continued consumer uncertainty, have generally slowed business growth and restricted opportunities… [and caused] higher prices and decreases in margins and consumer confidence.”

But he noted that “as we confront these challenges, it’s more important than ever for our industry to have a strong, public voice — and the NKBA is proud to be that voice.”

Darcy recapped the association’s 2025 highlights:

  • Strong Financials: Since 2012, annual revenue has grown nearly 150 percent to over $20 million in 2025. KBIS revenue growth was 11 percent in 2025 alone.
  • High Point Alliance: In May, NKBA and the High Point Market Authority formed a strategic alliance partnership, uniting K&B with the home-furnishings sector. As part of this alliance, NKBA introduced a dedicated presence at Broad Hall at High Point Fall Market, demonstrating an increased focus on connecting kitchen and bath to whole-home design.
  • Global Connect: NKBA’s international business membership program added 25 members last year and now represents 18 countries. The NKBA team participated at several major design fairs in the last year, in Germany, the UK, France and Brazil.
  • Addressing the Skilled Labor Crisis: The skilled labor crisis is a priority for NKBA. Chapters and members are helping people interested in exploring careers in K&B and skilled trades through scholarships, grants, career-focused events and working with the Skilled Labor Fund.

Looking toward the future, Darcy noted that “even amid unpredictable macroeconomic forces, the growth conditions for the residential design industry remain solid. Consumer interest is still incredibly strong, and they want to enjoy their homes and enhance their most important investment. Many of those homes are in or entering their prime remodeling years, and millions of homeowners remain locked into mortgages with historically low rates, which means they are still inclined to stay put and improve their existing spaces. Older homeowners, especially, are staying put and investing in their homes rather than looking to move or downsize.”

The 2026 K&B Market Outlook projects that the U.S. residential kitchen and bath industry will begin to recover in the second half, returning to growth gradually after three years of contraction. U.S. kitchen and bath revenue, including materials and labor, will grow slightly to $228 billion in 2026. This growth is primarily in repair/remodeling, which is forecast to increase by +2.9 percent. In contrast, spending on new construction is expected to decline by 3 percent in 2026.

“The NKBA is focused on keeping our industry competitive, relevant, and thriving. That means staying front-footed with our advocacy colleagues in Washington, coordinating closely with our international partners, and leveraging our research and relationships to keep you ready for whatever comes next.”

Darcy concluded by urging members to participate in NKBA research and surveys, to join efforts to mitigate the skilled labor shortage, and finally, to believe in the strength and resilience of the industry.

“Consumers continue to want what we can deliver: beautiful spaces and products that make their lives better,” he said. “We’re smart, and we’re prepared. There’s incredible power in this collective. We do better when we work together. I’m very confident in our shared future, and you should be, too.”

State of the Industry

Following his address, Darcy introduced Jaye Anna Mize to deliver the State of the Industry presentation. Mize, a highly respected creative strategist, trend forecaster, and prominent voice for future-forward design and innovation, is Vice President of Advisory + Partnerships at Future Snoops, a global trend forecasting agency that helps brands develop insight-driven strategies that future-proof their businesses.

She shared key five insights about how the home is changing and how behavior is shifting, what this means for consumers, and in turn, for designers.

• Beyond the Dream Home: The classic timeline — grow up, finish school, find a partner, buy a house, have kids — is out the window. Millennials and Gen Z don’t prioritize the same lifestyle as their parents. They have increasingly more debt, have watched housing volatility, climate change and labor instability unfold, and permanence doesn’t feel real. “These generations don’t care about marriage, formality, or staying put,” Mize said. “They want experiences. They don’t want white picket fences. So when the timeline shifts, the question shifts with it. Instead of asking ‘What does my dream kitchen look like?’ — consumers increasingly ask, ‘How do I make this kitchen work better for the next five to seven years?’ That isn’t a stylistic change. It’s a structural recalibration.”

Instead of chasing transformation, they’re prioritizing efficiency, adaptability, and everyday usability. And that’s where the definition of premium begins to change. Premium is no longer defined primarily by size or visual drama. Increasingly, it’s defined by how well a space performs over time.

“Consumers aren’t stepping away from improving their homes,” she said, “but the model of improvement is changing. Instead of asking how much more they can build, consumers are asking how well their existing space performs. They improve circulation rather than enlarge footprints. They refine storage logic rather than layer finishes. They invest in ease of use rather than visual scale.”

• Preservation: “This next shift is more existential,” Mize said. “For decades, luxury in the home was defined by refinement. Delicate materials. Rare finishes. Surfaces chosen for how they looked, not how they lived. That logic worked when stability was assumed, but stability is no longer assumed.”

Consumers today live with visible economic, environmental and social volatility, which changes the emotional role of the home. The home is no longer just an expression of taste. It’s becoming a form of protection — from rising costs, environmental exposure, health concerns and general uncertainty about the future. This shifts the definition of premium from refined to reliable. The home is increasingly treated as infrastructure to protect — and kitchen and bath are where that shift is most visible.

• Streamlined Shopping: The first two points addressed what consumers want from their homes. This shift is about how they decide. This is where AI comes in, as it reshapes discovery. It used to be that the journey began with exploration with a design professional. Now, savvy consumers often arrive having already researched layouts, compared products, and formed preliminary shortlists online— before a designer or showroom ever enters the picture. “What we’re seeing is a move from open-ended discovery toward guided decision-making,” she said. “Clients still want support. They want faster clarity, and confirmation that their choices will work. Reassurance that they’re avoiding costly mistakes. The question shifts from ‘What can we show them?’ to ‘How quickly can we help them decide with confidence?’”

Designers feel this shift before anyone else, Mize observed. Clients come in with screenshots, saved boards and shortlists already formed. The questions have changed too — it’s no longer ‘what are my options?’ It’s ‘will this work, will this last, will this fit the budget?’ The conversation starts at validation, not discovery.

• The Kitchen Community: Over the past few decades, the spatial hierarchy of the home has been quietly collapsing. Only about 14 percent of new homes now include a dedicated formal dining room — down dramatically from the mid-Nineties when they were standard. At the same time, roughly three-quarters of new homes now integrate the kitchen directly into the main living area. That structural change concentrates daily life into fewer shared spaces. And the kitchen absorbs the role of gathering space, work zone, hosting environment, and emotional anchor. It has evolved from a functional workspace into the primary social infrastructure of the home.

Younger generations place less value on formal hosting and more on frequent, informal gathering. Gen Z increasingly treats cooking as shared activity, social ritual, even content creation. The most meaningful moments in the home now happen around food — not in rooms designed for presentation. That’s why the kitchen has become the emotional center of the home — not because design trends say so, but because daily life demands it.

• Lifestyle Living: This final shift is less about the house itself and more about the role design plays in how people live. “For decades, home decisions were mostly contained within the category. Now, design operates across a lifestyle ecosystem,” she explained. “A hotel stay influences how someone thinks about their bathroom. A clothing brand shapes their color palette at home. A café informs how they imagine their kitchen should feel.

The home stops being a separate design project. It becomes part of a continuous lifestyle expression. Lifestyle living reflects a shift from designing rooms to designing alignment.”

Mize concluded that homes have become part of broader lifestyle expression, and that design has shifted from decoration toward coherence. “The home is no longer aspirational theater. It is the infrastructure for modern life. The industry that designs for that reality — that builds for how people actually live, not how we once imagined they would — will lead what comes next.”